ComEd 2006 Annual Report Download - page 116

(c) Delivery only revenues reflect revenue under tariff rates from customers electing to receive electricity from a competitive
electric generation supplier, which includes a distribution charge and a CTC. Prior to ComEd’s full integration into PJM on
May 1, 2004, ComEd’s transmission charges received from competitive electric generation suppliers were included in
wholesale and miscellaneous revenue.
(d) Wholesale and miscellaneous revenues include transmission revenue (including revenue from PJM), sales to municipalities
and other wholesale energy sales.
Results of Operations—PECO
2005 2004
Favorable
(unfavorable)
variance
Operating revenues ......................................... $4,910 $4,487 $ 423
Operating expenses
Purchased power and fuel ................................. 2,515 2,172 (343)
Operating and maintenance ................................ 549 547 (2)
Depreciation and amortization .............................. 566 518 (48)
Taxes other than income .................................. 231 236 5
Total operating expense ............................... 3,861 3,473 (388)
Operating income ........................................... 1,049 1,014 35
Other income and deductions
Interest expense, net ..................................... (279) (303) 24
Equity in losses of unconsolidated affiliates ................... (16) (25) 9
Other, net ............................................... 13 18 (5)
Total other income and deductions ...................... (282) (310) 28
Income before income taxes and cumulative effect of a change in
accounting principle ...................................... 767 704 63
Income taxes ............................................... 247 249 2
Income before cumulative effect of a change in accounting
principle ................................................. 520 455 65
Cumulative effect of a change in accounting principle ........... (3) — (3)
Net income ................................................. 517 455 62
Preferred stock dividends ...................................... 4 3 (1)
Net income on common stock ................................ $ 513 $ 452 $ 61
Net Income. PECO’s net income in 2005 increased primarily as a result of higher revenues, net of
related purchased power expense, due to favorable weather and lower interest expense due to the
scheduled retirement of debt owed to PETT, partially offset by higher CTC amortization.
Operating Revenues.The changes in PECO’s operating revenues for 2005 compared to 2004
consisted of the following:
Electric Gas
Total
increase
(decrease)
Rate changes and mix ............................................ $ 72 $ 90 $162
Customer choice ................................................. 118 — 118
Volume ......................................................... 101 (21) 80
Weather ........................................................ 54 10 64
Retail revenue ............................................... 345 79 424
T&O / SECA rates ................................................ 3 — 3
PJM transmission ................................................ (3) — (3)
Other .......................................................... 9 (10) (1)
Wholesale and miscellaneous revenues .............................. 9 (10) (1)
Increase in operating revenues ..................................... $354 $ 69 $423
111